IPBC's Topics and Tips Newsletter 'Dear TaxDetective®' is a monthly column that answers burning questions about accounting and tax. Remember Dear Ann? Well now's your chance-- ask Dear TaxDetective a tough question. Send your questions to info@ipbc.ca

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Dear TaxDetective®

Copyright 2009 Eileen Reppenhagen

I am sure you have dealt with a situation that I am about to describe. I was hired by a new client who incorporated in early 2006 with an intention to start selling services right away. The arrangement fell through. The corporation ended up not doing any business until early 2009.

The client didn't file his corporate taxes for the three years. There was no activity other than payments of legal expenses for keeping a records office, filing annual reports, etc.

As he didn't have any tax payable, this wouldn't be a voluntary disclosure would it? Do we just file his returns for 3 years, or should we be writing an explanation letter of some sort to go along with the returns? You input will be greatly appreciated!

Tax Detective:

You are right, I've seen this many times. All corporations are required to file T2's even if they are inactive. If there are no taxes or penalties owing, file the returns for each year. There's no need to file voluntary disclosures.

Before you start, make sure you have everything you need when you file, including copies of the Minute Book to check you've got all the correct shareholders and their holdings to report on the T2. You'll also need to know their capital contribution and make sure they paid for their shares as just making a journal entry to record a receivable for shares isn't enough.

You'll also need to know if there are other companies in the group because those small business limits must be allocated between companies. Start a spreadsheet to track the change in retained earnings too. I've seen companies where the retained earnings ending one year and opening the next year didn't agree. There was a phantom entry to record a dividend that wasn't reported to the tax department. Yes, that's fraudulent.

You'll also want to ensure that the shareholder loan accounts were not in a debit position during the year as S. 80.4 deemed interest income to the shareholder may be applicable and if not repaid, S. 15(1) benefits and/or S. 15(2) benefits for use or appropriation of company assets may be required. Use of company assets can vary and don't just include use of the company condo to standby and operating cost benefits on vehicles.

Voluntary disclosure requires there be amounts payable. Penalties can be forgiven by disclosure but interest on amounts owing usually can't. Unless something has changed, there are no late penalties for returns with nothing owed. What you have to watch for is penalties for filing late returns, late filed elections,and late filed information returns like T1135s which reports on foreign ownership. You can find those penalties listed in various web pages on the CanRev website.

Suggested links:

· Corporate income tax T2 return

· T2 filing made easy - file electronically from your desktop

· T2 filing penalties

· Voluntary Disclosures Program

· Enforcement and Disclosures - What's New

· Update: CRA's Voluntary Disclosures Program (VDP) no-name disclosure policy

· IC00-1R2, Voluntary Disclosures Program

· RC199, Taxpayer Agreement - Voluntary Disclosures Program

As for other penalties, here are some more suggested links:

· Late-filing penalty

· Instalment penalty

· Penalties (Payroll)

· Avoid penalties (Corporations)

· GST/HST - Penalties and interest

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This column is written by Eileen Reppenhagen, CGA, Certified QuickBooks ProAdvisor, and Honorary Member, IPBC

Do you have a question about tax? Send Eileen your question for a future column via eileen@taxdetective.ca

Visit her fabulous website at www.taxdetective.ca

From The Executive Director's Desk

Imagine networking with some of the top bookkeepers in the country. Imagine the chance to be on the fast track to a more lucrative practice . . . to being a certified professional bookkeeper (CPB) . . . and to receiving greater professional recognition inside and outside of this network. Regional Meetings are a vital part of that formula for success.

They're a unique chance to combine learning - a guest speaker shares expertise that's sure to make your work a bit easier - with fun and powerful networking. Every meeting is free to attend.

MEETINGS

CALGARY, AB

Date: Wednesday November 18th, 2009

Time: 6PM to 8:30

Dinner & Networking start at 6PM; Meeting starts at 7PM

(meetings start & end precisely on schedule)

Location:

ABC Country Restaurant

11520- 24 Street SE, Calgary, AB

You are responsible for your own meal and beverage

Regional Developer: Alan Stenbeck, CPB

Topic: Holiday Social and Roundtable discussion on "IPBC for 2010-What would you like to see?"

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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SASKATOON, SK

Date: Wednesday November 18th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Grainfields Pancake & Waffle House

Grosvenor Park Centre (8th Street), Saskatoon, SK

You are responsible for your own meal and beverage

Regional Developer: Brenda Cross, CPB

Presenter: Steve Bell, Business Networking International

Topic: Demystifying networking, how to do it properly.

Come learn how to market yourself and your business through networking.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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HALIFAX REGIONAL MUNICIPALITY, NS

Date: Thursday, November 19th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Quality Inn Dartmouth, 313 Prince Albert Road

You are responsible for your own meal and beverage

Regional Developer: Angela Franklin, CPB

Presenter: Dave Roberts-Bradley Roberts & Assoc.

Topic: Building Financial Security

Learn how to take advantage for traditional and non-traditional investment opportunities and build financial security for any size business

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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KITCHENER, ON

Date: Wednesday November 18th, 2009

Time: 5:30PM to 8PM (meetings start & end precisely on schedule)

Location:

Country Boy Restaarant, 5 Manitou Drive, Kitchener, ON

You are responsible for your own meal and beverage

Regional Developer: Cindy Jeary, CPB

Presenter: Bruce Elliott, Business Networking International

Topic: Demystifying networking, how to do it properly.

Come learn how to create a powerful 1 minute infomercial on yourself and your business.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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EDMONTON, AB

Date: Thursday November 19th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

The ABC Country Restaurant

12707- 140 Ave, N.W., Edmonton, AB

You are responsible for your own meal and beverage

Regional Developer: Lynn Magnaye, CPB

Presenter: Rob Pasay - BugByte Corporation

Topic: Paranoia works, and backups are essential!

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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VANCOUVER, BC

Date: Thursday November 19th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

ABC Country Restaurant at the Accent Inn

2350 Boundary Road (Boundary & Lougheed Hwy)

--access parking off of Boundary Road

You are responsible for your own meal and beverage

Regional Developers: Kathy Fike, CPB and Kandice Keith

Presenter: Panel Discussion headed by: Dianne Mueller, CPB - Simply Soma

Topic: Best Practices will be presented by a panel. Please ask your questions for discussion at this roundtable when submitting your reservation.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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TORONTO EAST, ON

Date: Monday November 23rd, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

Apple Jack's

5328 Hwy 7 (at McCowan), Markham, ON

You are responsible for your own meal and beverage. Fajita Buffet for $20.00 plus tax and gratuity includes the following: Nachos, House and Caesar Salad, Chicken and Steak Fajitas, Selection of cake, and Coffee or Tea

Regional Developer: Susan Hopcroft, CPB

Presenters:

Warren Houston, NetConneXion Internet Marketing

Canada Revenue Agency

Topics:

1)The Secret to Growing Your Business Via the Web

To use the Internet to promote our businesses, all we need is a website, right? Wrong. Warren Houston will be joining us to discuss how a simple Internet marketing strategy can greatly impact the number of leads you receive and help you convert web visitors to actual customers. Warren will also be sharing the secrets to a good web site and how to improve your rankings in Google & Yahoo.

2)Taxable Benefits

The CRA is joining us to give us a refresher of what is and isn't taxable as employee benefits and to go over some new rules that have been implemented for 2009

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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TORONTO WEST, ON

Date: Monday November 30th, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

Lone Star Texas Grill (upstairs meeting room)

930 Dixon Road, Toronto, ON

You are responsible for your own meal and beverage; Fajita Buffet for $21.99 plus tax and gratuity includes the following: Chips and Salsa, House Salad, Chicken, Steak, and Veggie Fajitas, Sweet Tray, and Coffee or Tea

Regional Developer: Susan Hopcroft, CPB

Presenters:

Warren Houston, NetConneXion Internet Marketing

Canada Revenue Agency

Topics:

1)The Secret to Growing Your Business Via the Web

To use the Internet to promote our businesses, all we need is a website, right? Wrong. Warren Houston will be joining us to discuss how a simple Internet marketing strategy can greatly impact the number of leads you receive and help you convert web visitors to actual customers. Warren will also be sharing the secrets to a good web site and how to improve your rankings in Google & Yahoo.

2)Taxable Benefits

The CRA is joining us to give us a refresher of what is and isn't taxable as employee benefits and to go over some new rules that have been implemented for 2009

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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ST. CATHARINES, ON

Date: Tuesday, November 24th, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

The Blue Mermaid's Party Room (Market Square), St Catharines, ON

You are responsible for your own meal and beverage

Regional Developer: Virginia Valle, CPB

Presenter: Angela Carter of Angela Carter Enterprises

Topic: "Brand Me! How to create an infomercial on your business and yourself"

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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BRIDGEWATER, NS

Date: Tuesday November 24th, 2009

Time: 6:30PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Acadia Centre for Social and Business Entrepreneurship, 215 Dominion Street

Regional Developer: Angela Franklin, CPB

Presenter: Kevin Morrison, WCB Account Manager, Bridgewater Area

Topic: Workers Compensation - Up Close and Personal!

· What are the required forms and processes for claims

· Filing requirements

· Become aware of some of the more common mistakes and how to avoid them

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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VICTORIA, BC

Date: Tuesday November 24th, 2009

Time: 6:30PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Christ Community Church

3897 Holland Avenue, Victoria, BC

You are responsible for your own meal and beverage

Regional Developer: Wendy Willis, CPB

Presenter: Simon Vreeswijk of Stikky Media

Topic: Social Networking

How to market your business using the internet.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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KELOWNA, BC

Date: Tuesday November 24th, 2009

Time: 6PM to 8PM (meetings start & end precisely on schedule)

Location:

Perkins, 2170 Harvey Avenue, Kelowna

You are responsible for your own meal and beverage

Regional Developer: Judy Rheault, CPB

Presenter: Jason Owen, CA with Adams Heymen Owen Chartered Accountants

Topic: What an Accountant looks for from a bookkeeper

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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NORTH BAY, ON

Date: Wednesday November 25th, 2009

Time: 8:30AM to 10AM (meetings start & end precisely on schedule)

Location:

Chamber of Commerce, 1375 Seymour Street, North Bay

You are responsible for your own meal and beverage

*donations for coffee & muffins will be donated to the North Bay Food Bank

Regional Developer: Susan Peters, CPB

Presenter: Mr. Dean Decaire, CA, Partner, BDO North Bay

Topic: Year End Working Papers & Files

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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COBOURG, ON

Date: Wednesday November 25th, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

The Mill Restaurant, 990 Ontario St, Cobourg, ON

You are responsible for your own meal and beverage

Regional Developer: Denise Franklin, CPB

Presenter: Melissa Cowie - Revue

Topic: Branding Your Business

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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PRINCE GEORGE, BC

Date: Thursday, November 26th, 2009

Time: 6PM to 8PM (meetings start & end precisely on schedule)

Location:

A & A Restaurant, 15th & Central, Prince George

You are responsible for your own meal and beverage

Cost: $20 includes dinner, dessert, & beverage

Regional Developer: Margaret Ana Fernandez, CPB

Presenter: Alan Nordling from WCB

Topic: Due Diligence for Employers

Come learn what employers responsibilities are for reporting to Workers Compensation

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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UPCOMING National Phone Conferences:

January 21st-Social Media Presented by Jess Sloss of Giant Ant Media

February 17th-Payroll Compliance Issues-Presented by Steven Van Alstine, VP of Compliance for the Canadian Payroll Assoc. March 17th- Human Resources Issues-Presented by Joan Noel of Lightcycles Coaching

April 21st-Brand Me!-Presented by Matthew Peterson of Accounting Cycle

"The CRA's Voluntary Disclosure Program"

Time: 11:30am PT - 12:30pm PT

Cost: The meeting is free; toll charges to access the call will be your responsibility, or you may use a VOIP connection.

Topic:"The CRA's Voluntary Disclosure Program"

Presenter: Esmail Bharwani, Miller Thomson LLP

Brief summary of the presentation

Esmail will provide insight into the Canada Revenue Agency's voluntary disclosure program, the conditions for making the disclosure, its process, and the relief provisions, and will discuss how one might go about making a disclosure. Taxpayers who come forward to disclose unreported income or to correct previously claimed ineligible expenses get relief from excessive interest costs, penalties, prosecution, and publicity.

Bookkeepers who work closely with their clients may come across situations where they might consider appropriate advising their clients to take the benefit of this program, as it allows delinquent taxpayers to receive relief from past omissions, errors, gross misrepresentation, and fraud.

SPEAKER BIO

Esmail is both a lawyer and accountant who practices in the areas of tax planning, tax compliance, wills, estates and trusts, charities and not-for-profit, corporate and commercial planning and transactions, and reorganization of privately-held corporations.

He spends an extensive amount of time assisting clients with designing structures for asset protection, business succession planning, estate planning for business owners and high net worth individuals, and uses his knowledge and experience in resolving disputes with auditors, appeals and special investigation branch, and filing voluntary disclosure submissions with Canada Revenue Agency.

In addition to being a lawyer, Esmail has also been a Certified General Accountant, tax, trusts and estates practitioner and educator in Canadian taxation laws and practice, entrepreneurship creation, development and growth strategies for more than 29 years.

Esmail has a successful track record settling many income tax and GST related disputes with the Canada Revenue Agency since 1976. Esmail started making submissions under the CRA's Voluntary Disclosure Program in 1990. As a former member of the Board of Management of Canada Revenue Agency for 6.5 years and a member of the Appeals Advisory Committee and a columnist with various publications, Esmail understands concerns of taxpayers and the inner workings of the Canada Revenue Agency which contributes to his ability to harmoniously conduct business dealings with his clients and CRA.

To make a reservation for this event, please click on the link https://www2.gotomeeting.com/register/473792730

The connection details will be emailed to you automatically. .

SPECIAL EVENT

"New GAAP for Small and Medium Enterprises"

Brief summary of the presentation

Sometime in December 2009 the Canadian Accounting Standards Board (AcSB) will release a new GAAP for private enterprises to take effect for financial years commencing January 1, 2011. This will be the most extensive change to Canadian GAAP in the last 15 years and its release in December is meant to give providers of financial statements sufficient time to make a decision about what accounting standards they will choose to use from January 1, 2011.

However, if your financial year commences on or after January 1, 2011 won't you need to have comparatives for 2010? Absolutely! So you need to be planning for the transition now!

In this webinar you will find out what your choices are if you are preparing accounts in 2010, what standards will be changing, whether the changes affect accounting or just disclosure and if IFRS will have an impact on accounting for private enterprises.

Time: 11:30am PT - 12:30pm PT

Cost: The meeting is free; toll charges to access the call will be your responsibility, or you may use a VOIP connection.

Topic: "New GAAP for Small and Medium Enterprises"

Presenter: Paul Ennis, CGA of The Alberta CGA Association

To make a reservation for this event, please click on the link https://www2.gotomeeting.com/register/329706106 .

The connection details will be emailed to you automatically.

VersAccounts is a complete web-based accounting system for Canadian small businesses. It allows bookkeepers to securely share accounting information with clients over the internet. It can be used with Windows-based PC's or Apple iMac computers. And of course, it handles Canadian taxes such as GST/HST and PST.

Get started with VersAccounts today. Visit them at http://www.versaccounts.com

There are only two words that will always lead you to success. Those words are yes and no. Undoubtedly, you've mastered saying yes. So start practicing saying no. Your goals depend on it!

-Jack Canfield

If you are an IPBC member, you should proudly be displaying the IPBC logo along with a link, so your visitor can learn a little about your professional association. Membership in IPBC gives you an edge over your competition.

Show the world that you belong to a professional association for professional bookkeepers by adding a short informational video about IPBC to your signature line in your email program. The link, entitled 'View this short informational video about IPBC' is found below.

In Outlook, click 'Tools', followed by 'Options', 'Mail format', 'Signatures', and 'New' or 'Edit', depending if you already have a signature. Then copy and paste the link, "View this short informational video about IPBC", into this spot. Click 'OK'.

Feel free to contact us at info@ipbc.ca with any questions.

The purpose of the IPBC newsletter is to assist Canadian bookkeepers with tools, ideas, and resources to make your business efforts easier, and to help your business grow by delivering timely and thoughtful information. Do you have a story to share? Words of wisdom? Pass them along to us.

Email karenl@ipbc.ca

View this short informational video about IPBC